RDP 8610: Equilibrium Exchange Rates and a Popular Model of International Asset Demands: An Inconsistency Equation (22b)

d w ^ = w ^ [ r ^ + Σ ^ a ^ j ( μ ^ j r ^ )+ a ^ s ^ +1 ( r μ e + σ e 2 r ^ )+ Σ ^ a s ^ +j ( μ j μ e + σ e 2 σ je r ^ ) c ^ / w ^ ]dt + w ^ [ Σ ^ a j σ ^ j d z ^ j a ^ s ^ +1 σ e d z e +Σ a ^ s ^ +1 ( σ j d z j σ e d z e ) ] MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGceaqabeaacaWGKb Gabm4DayaajaGaeyypa0Jabm4DayaajaWaamWaaeaaceWGYbGbaKaa cqGHRaWkcuqHJoWugaqcaiqadggagaqcamaaBaaaleaacaWGQbaabe aakmaabmaabaGafqiVd0MbaKaadaWgaaWcbaGaamOAaaqabaGccqGH sislceWGYbGbaKaaaiaawIcacaGLPaaacqGHRaWkceWGHbGbaKaada WgaaWcbaGabm4CayaajaGaey4kaSIaaGymaaqabaGcdaqadaqaaiaa dkhacqGHsislcqaH8oqBdaWgaaWcbaGaamyzaaqabaGccqGHRaWkcq aHdpWCdaqhaaWcbaGaamyzaaqaaiaaikdaaaGccqGHsislceWGYbGb aKaaaiaawIcacaGLPaaacqGHRaWkcuqHJoWugaqcaiaadggadaWgaa WcbaGabm4CayaajaGaey4kaSIaamOAaaqabaGcdaqadaqaaiabeY7a TnaaBaaaleaacaWGQbaabeaakiabgkHiTiabeY7aTnaaBaaaleaaca WGLbaabeaakiabgUcaRiabeo8aZnaaDaaaleaacaWGLbaabaGaaGOm aaaakiabgkHiTiabeo8aZnaaBaaaleaacaWGQbGaamyzaaqabaGccq GHsislceWGYbGbaKaaaiaawIcacaGLPaaacqGHsislceWGJbGbaKaa caGGVaGabm4DayaajaaacaGLBbGaayzxaaGaamizaiaadshaaeaacq GHRaWkceWG3bGbaKaadaWadaqaaiqbfo6atzaajaGaamyyamaaBaaa leaacaWGQbaabeaakiqbeo8aZzaajaWaaSbaaSqaaiaadQgaaeqaaO GaamizaiqadQhagaqcamaaBaaaleaacaWGQbaabeaakiabgkHiTiqa dggagaqcamaaBaaaleaaceWGZbGbaKaacqGHRaWkcaaIXaaabeaaki abeo8aZnaaBaaaleaacaWGLbaabeaakiaadsgacaWG6bWaaSbaaSqa aiaadwgaaeqaaOGaey4kaSIaeu4OdmLabmyyayaajaWaaSbaaSqaai qadohagaqcaiabgUcaRiaaigdaaeqaaOWaaeWaaeaacqaHdpWCdaWg aaWcbaGaamOAaaqabaGccaWGKbGaamOEamaaBaaaleaacaWGQbaabe aakiabgkHiTiabeo8aZnaaBaaaleaacaWGLbaabeaakiaadsgacaWG 6bWaaSbaaSqaaiaadwgaaeqaaaGccaGLOaGaayzkaaaacaGLBbGaay zxaaaaaaa@A579@